Finance of America expands HomeSafe Second reverse mortgage to four new markets

Finance of America (FOA) said Tuesday that it has expanded its HomeSafe Second reverse mortgage product into Louisiana, Missouri, Rhode Island and Washington, D.C., bringing the product’s availability to a total of 18 states and the District of Columbia.

The expansion comes as more older homeowners seek ways to access home equity without refinancing existing low-rate mortgages or taking on required monthly mortgage payments associated with traditional home equity borrowing.

HomeSafe Second, reintroduced in 2023, is a second-lien reverse mortgage designed for homeowners ages 55 and older, although the minimum age is 60 in Washington and 62 in Texas. The product allows borrowers to tap a portion of their home equity while keeping their existing first mortgage in place.

Borrowers must continue to meet loan obligations such as payment of property taxes, homeowners insurance and other property-related expenses while maintaining the home.

Kristen Sieffert, president of Finance of America, said the company continues to see demand from both homeowners and loan officers for the product, particularly among borrowers who want to preserve existing mortgage rates while accessing housing wealth.

“Many homeowners have significant equity but limited ways to access it without adding a monthly payment or giving up a low mortgage rate,” Sieffert said in a statement. “Expanding HomeSafe Second to additional states, along with our technology-driven approach, gives more homeowners a practical way to strengthen their financial position in retirement.”

Finance of America said the expansion reflects growing interest in second-lien reverse mortgages as housing wealth has increased in many markets while retirees face higher living expenses, insurance premiums and property taxes.

The company said homeowners in markets such as Rhode Island and Washington, D.C., have benefited from home price appreciation but may have limited access to liquid assets, while retirees in states such as Missouri may be seeking additional financial flexibility without increasing monthly expenses.

The announcement follows a previous expansion in March, when FOA expanded access to the HomeSafe Second product into Indiana, Ohio and Michigan.